[Congressional Record (Bound Edition), Volume 148 (2002), Part 15]
[Extensions of Remarks]
[Pages 21180-21181]
[From the U.S. Government Publishing Office, www.gpo.gov]




                 INTRODUCING AIRLINE WORKER RELIEF ACT

                                 ______
                                 

                         HON. JAMES L. OBERSTAR

                              of minnesota

                    in the house of representatives

                      Wednesday, October 16, 2002

  Mr. OBERSTAR. Mr. Speaker, today I and 28 of my colleagues from the 
Transportation and Infrastructure Committee have introduced the 
``Airline Worker Relief Act,'' legislation to deal with inequities in 
our treatment of companies in the aviation industry, on the one hand, 
and their employees on the other. While we have given $15 billion of 
financial assistance to the aviation industry to help them recover from 
the impact of September 11, we have not give any relief to industry 
workers who lost their jobs as a result of September 11. Now 
legislation is being developed to help the aviation industry to weather 
the difficulties it will face if there is a war with Iraq. Regrettably, 
the bills which have been developed do not include relief for displaced 
aviation industry workers. My bill will establish a framework for 
providing this relief.
  Although the events of September 11 had effects throughout our 
economy, the effects on the aviation industry were direct and far-
reaching. The airlines were totally grounded for several days and 
realized no revenues while incurring hundreds of millions of dollars in 
expenses. Even after the industry resumed flying, passenger traffic was 
slow to recover because of public anxiety over security. The events of 
9/11 have also added to the industry's expenses, including a billion 
dollars a year in increased insurance costs, and loss of substantial 
revenues because of security limitations on the carriage of freight and 
mail. A coming war with Iraq is also likely to have a significant 
impact on the industry, including increased fuel costs, loss of revenue 
from the reluctance of passengers to fly, and from need of our military 
to use the airlines' aircraft to carry troops and equipment to the war 
zone.
  Shortly after September 11, Congress responded to the aviation 
industry's financial problems by passing a $15 billion package of 
direct assistance and loans. More recently, legislation has been 
reported by the Aviation Subcommittee of the House Committee on 
Transportation and Infrastructure to provide airlines with low cost war 
risk insurance from the federal government, enhanced opportunities to 
carry freight and mail, and loan guarantees to assist the carriers in 
coping with any major increases in fuel costs resulting from a war with 
Iraq.
  While I have supported these efforts to aid the industry for the 
problems created by terrorism and war, I and many of my colleagues are 
deeply disappointed that there has not been the same fair treatment of 
aviation industry employees who have also suffered from terrorism and 
war.
  Aviation industry workers, including employees of airlines, aircraft 
manufacturers and suppliers, and airports, have suffered unprecedented 
job loss and economic uncertainty. Some 100,000 airline employees are 
out of work or facing imminent lay-off. Another 30,000 Boeing workers 
have been laid-off, along with 51,000 additional aerospace employees. 
And with bankruptcies looming large, the staggering job losses may 
grow.
  The issue of aiding aviation employees is not new. When we passed the 
$15 billion assistance bill soon after September 11, I, and many of my 
colleagues, insisted that if the airline companies were to be afforded 
relief, so should employees who had lost their jobs. The Republican 
leadership told us that there was no time to develop a consensus 
proposal on employee relief, but on the House floor, Speaker Hastert 
promised prompt consideration of employee relief, including financial 
assistance, ability to retain health insurance, and training for new 
careers. Regrettably, the leadership has not followed through, and the 
House has never considered assistance for displaced airline employees.
  Mr. Speaker, if the airline industry is entitled to special relief 
because it has suffered disproportionately from terrorism and war, its 
displaced workers are equally deserving of relief. My bill will help to 
redress the imbalance, and help the industry's employees cope with 
difficulties arising from events outside their control.
  My bill provides unemployment benefits, training, job search 
assistance, and healthcare assistance for airline workers displaced 
from their jobs as a result of reductions service by air carriers and 
closures of airports caused by the terrorist attack on September 11, 
2001, security measures taken in response to the attacks, or a military 
conflict with Iraq authorized by the Congress. Benefits would be 
extended to employees of airlines, airports, commercial aircraft 
manufacturers and airline suppliers.
  To summarize the benefits in greater detail: Unemployment Benefits: 
This bill would extend the Temporary Extended Unemployment Compensation 
Act of March 2002 and provide an additional 13 weeks of benefits for 
eligible aviation workers who have already exhausted their initial 13 
weeks of benefits.
  Training: In the present economy, many laid off aviation workers will 
be unable to return to the industry in which they are employed. Under 
my bill, individuals who would not be expected to return to their jobs 
within the aviation industry would be eligible for retraining benefits 
and adjustment allowances. Individuals who would not be expected to 
return to their jobs, but who may find some alternative job within the 
various sectors of the aviation industry, would also be eligible for 
training.
  Health Care: COBRA coverage, which continues health insurance for 
displaced workers, is prohibitively expensive and beyond the ability of 
many workers to pay. My bill requires the Secretary of Treasury, in 
consultation with the Secretary of Labor, to establish a program under 
which 75% of the premium for COBRA continuation coverage shall be 
provided for a displaced aviation employee. Payment of such premium 
assistance may be made through appropriate direct payment arrangements 
with a group health plan or health insurance issuer. Individuals who do 
not qualify for COBRA and are otherwise uninsured might be able to 
benefit from a state option to provide temporary Medicaid coverage. 
Furthermore, a state could provide temporary coverage under Medicaid 
for the unsubsidized portion of COBRA continuation premiums.
  Hiring Preferences for Laid Off Workers: Thousands of federal 
security screener jobs remain unfilled at the Transportation Security 
Administration. Title III of my bill establishes a preference for 
displaced airline workers for TSA airport security screening jobs. 
Additionally, the Under Secretary of Transportation Security is 
directed to develop a program of performance incentive awards to 
Federal Security Managers, to encourage the hiring of eligible airline 
employees for TSA positions.
  Mr. Speaker, my bill is designed to furnish assistance to aviation 
industry workers who have suffered severe economic damage from

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the terrorist attacks of September 11, and those who may suffer as a 
result of a war with Iraq. This assistance can tide them over the 
initial period of economic distress, and help them find new jobs. Just 
as we found it appropriate to recognize the plight of our airlines as 
economic victims of a terrorist attack on our entire nation, we should 
also recognize the plight of that industry's employees.
  I urge my colleagues to join me in working to pass this important and 
equitable legislation.

                          ____________________